The State of BC’s Forests The Indicators Ownership and management — PDF print version

Indicator 11 – Ownership and management

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Why is this important?

Benefits and obligations are tied to ownership and management. Public concerns include log exports, public control of development, corporate concentration and access to resources.

Overview

• Ownership and management convey both rights to benefits and responsibilities for resource stewardship, as specified by international, national and, primarily, provincial policies and agreements.
• Most of B.C.’s forests are owned and managed by the provincial government on behalf of all British Columbians, with consideration of aboriginal rights and title.
• Changes in public expectations result in ongoing reallocations of rights and changes in management responsibilities.

STATE

mixed

TREND

mixed

INFORMATION

adequate

Questions about ownership and management

11-1	Who owns B.C.’s forests?
11-2	Who manages the forests, and for what uses?
11-3	How much timber is available to large operators?
11-4	How much timber is available to small operators?
	Ministry of Forests and Range’s assessment

Related indicators

• Ownership and management are affected by resolution of aboriginal rights and title issues and changing social values (see First Nations involvement, Public involvement)
• The security and stability of ownership and management rights affects economic activity and communities (see Forest products, Jobs and communities).
• Management responses include revision of laws and policies (see Law).

Indicator 11-1

Who owns B.C.’s forests?

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Why is this important?

The right to make land use and forest management decisions depends primarily on ownership.

State and Trend

• Most of the province’s forests are publicly owned: the province owns 93% and the federal government owns 1%.
• Private owners hold 5% of the forests. In 2000, 0.2% were granted to First Nations, mostly as Nisga’a treaty settlement lands.
• Over the past 25 years, 350,000 hectares (less than 1% of the province’s forests) within provincial forests changed ownership category.
• First Nations’ claimed aboriginal rights and title affect land use and forest management decisions on public and private forest land⁸.
• Extensive forest practices regulations apply to forest land owned by the province. Simpler regulations apply to some private land designated as managed forest land. Minimal regulations apply to the remaining private forest land.
• Log exports are permitted only if they are surplus to the needs of provincial mills⁹. The amount of logs exported, as a percentage of the provincial harvest, averaged 1% in the 1970s, 3% in the 1980s, 1% in the 1990s and over 4% since 2000, with most of the recent increase from private land.
• Private owners have the right to preclude public access for recreation.
• Maps: Land ownership (PDF)

Information

• Ownership data and maps are not precise at the provincial level.
• Private land forest cover inventories are not publicly available.
• Log export data are publicly available from MFR and Statistics Canada.
• References: MAL’s ILMB; Private Managed Forest Land Council; MFR’s Log Exports; Statistics Canada’s Trade Database
• Related international and national indicators: MP 7.1.a; CCFM 6.1.2

Indicator 11-2

Who manages the forests, and for what uses?

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Why is this important?

Forest management results depend on the rights and objectives of the manager.

State and Trend

• B.C.’s landowners manage their forests for a variety of uses, including timber and non-timber values. The mix of uses evolves to reflect changing economic conditions and social values.
• First Nations and private forests (6% of B.C.’s forests) are managed for a variety of uses. Private managed forest land (1% of provincial forests) is managed for timber harvesting, with consideration of other values.
• Government oversees the management of public forests and delegates most operational management decisions to holders of resource tenures. Oversight by several agencies ensures accountability to the public.
• Several types of tenures are used to manage timber harvests on 43% of B.C.’s forest area (up from 37% in 1980). Most are long-term tenures that require the holder to plan for timber harvests and other resource values, reforest, build roads and control wildfires.
• Tenures sold by BC Timber Sales (a division of the Ministry of Forests and Range) establish the market price of timber. As of 2003, a portion of tenures held by large operators is being reallocated to BC Timber Sales, woodlots, community forests and First Nations enterprises.
• The other 51% of B.C.’s forests are managed by various ministries for non-timber uses, primarily conservation and recreation. This includes protected forests, which increased from 4% in 1980 to 10% in 2005.
• Maps: Forest Management Units (PDF)

Information

• Current allocations of timber tenures are publicly available.
• References: MFR’s Timber Tenures, Apportionment; BC Parks; Parks Canada
• Related international and national indicators: MP 7.1.a; CCFM 5.2.1

Indicator 11-3

How much timber is available to large operators?

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Why is this important?

Larger companies can be stronger competitors in global markets; however, too much corporate concentration may stifle diversity and innovation in the forest sector.

State and Trend

• The timber harvesting rights held by major companies have repeatedly led to concerns about corporate concentration.
• Ownership of companies, and related timber rights, change fairly often. From 1975 to 2006, four different companies were in top position, with the largest share of government-set allowable annual cuts (AACs). Only one of the top 10 companies in 1975 is still in the top 10 list.
• The company with the largest share of the sum of AACs increased from 8% 1995/96 to 15% in 2004/05. With subsequent increases in AACs in some management units, and government’s reallocation of timber to a variety of small operators, its share decreased to 11% in 2006/07.
• The share held by the three top companies similarly increased from 22% to 30%, and then decreased to 26% in 2006/07.
• The share held by the top 10 companies peaked at 57% in 1999/00¹⁰, and decreased to 38 million m³ or 42% of AACs in 2006/07.
• The number of large operators¹¹ increased from 37 in 2000/01 to 61 in 2006/07. Their share of AACs, however, decreased from 75% to 59%.
• Geographic concentration of companies may result in the proportions of AAC held by individual companies being greater within regions and individual timber supply areas than for the province as a whole.
• Maps: Forest Management Units (PDF), Forest Regions and Districts (PDF)

Information

• Current ownership and allocation information is publicly available on the internet for timber supply areas and tree farm licences.
• References: MFR’s Timber Tenures, Apportionment
• Related international and national indicators: MP (none); CCFM (none)

Indicator 11-4

How much timber is available to small operators?

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Why is this important?

Providing small operators with access to timber can encourage innovation, community involvement and competitive bidding.

State and Trend

• Timber harvest volumes allocated to small operators¹² increased from near nil in 1980 to over 24 million m³ in 2005/06. This includes the planned reallocation of volume from large operators.
• Programs for woodlots and small businesses were initiated in 1980, and their combined allocations increased to 10 million m³, by 1990. Policies changed over the years, but continued to target small operators.
• In response to public demand, 16 community forest tenures were issued in 2000 through 2006, accounting for 0.3 million m³ in 2006.
• In 2003, BC Timber Sales replaced the small business program. Its mandate is to sell public timber by auction to establish market prices and optimize net revenue to the government. Although it does not target small operators, most of its customers are small operators.
• The reallocation of part of the AACs held by large operators, begun in 2003, will boost timber volumes available to small operators.
• Since 1995, changes in policy, along with market pressures, increased the volume held by operators with between 25,000 m³ and 100,000 m³.
• At the end of 2005, small operators had 824 woodlots, 11 community forests, 764 BC Timber Sales licences, and 210 other licences.
• Maps: (none)

Information

• Data are only available by licence program up to 1993/94. Data by individual operators, rather than by program, are preferable and are only available from 1993/94 on.
• Related sources: MFR’s Annual Reports, Timber Tenures
• Related international and national indicators: MP (none); CCFM (none)

 

Indicator 11 – Ownership and management Ministry of Forests and Range’s assessment State mixed Public forests account for 94% of the province’s forests, with the province owning 93%. First Nations claim aboriginal rights and title to many areas of B.C., and this creates some uncertainty for land use and forest management decisions on both public and private land. It is also one of several considerations driving the current reallocation of forest tenures. Just over half of B.C.’s forests are managed for non-timber uses such as conservation and recreation. Most of the rest is managed by the forest industry and government under a variety of tenures. The ten companies with the largest shares of these tenures currently hold 42% of government-set AACs. Sixty-one large operators, including the top ten companies, hold 59% of the AACs in 225 licences. Over 24 million m3 annually is available to small operators that hold over 1,800 licences. Trend mixed Forest ownership has been stable over the past 25 years, and less than 1% changed from provincial to other ownerships. The area managed for timber harvests expanded over the past 25 years, as did the area of protected forests managed for conservation. The province, First Nations and the forest industry continue to increase cooperation and partnerships in land use planning and forestry, to better manage the multiple values of forests. The portion of government-set AACs held by the top ten companies peaked 57% in the 1999/00. Their combined AAC holdings have decreased in both volume and percentage terms, despite ongoing consolidation of companies, due to the current reallocation of AACs and short-term AAC increases. The volume allocated to small operators has increased, and is expected to increase the industry’s flexibility to respond to global market challenges. The growing number of licences presents considerable administrative challenges. Information adequate A comprehensive and precise provincial map of current ownership is not available, but is being developed. Historical ownership data are not in readily useable form. Current allocations of timber tenures are readily available on the internet. Some historical information on tenure allocations is available.